California considers transportation electrification

California utility regulators are considering proposals by electric utilities to electrify the transportation sector.  If the three largest electrical corporations' proposals are approved by the California Public Utilities Commission, it could represent an investment of about $1 billion in transportation electrification in California over about 5 years.

The transportation sector is a major consumer of energy and emitter of carbon dioxide.  In California, the transportation sector accounts for 37 percent of statewide greenhouse gas emissions.  Electrifying transportation -- converting vehicles and trips from direct consumption of fossil fuels to EVs or electric vehicles -- can reduce emissions, particularly where the electricity supply is sourced from renewable or low-carbon resources.

To address energy and climate matters, in 2015 the California legislature enacted Senate Bill 350, the Clean Energy and Pollution Reduction Act.  SB 350 codified Governor Edmund G. Brown Jr.'s clean energy and climate change goals, establishing a statewide 2030 greenhouse gas reduction target of 40 percent below 1990 level.  SB 350 calls for pursuing those goals through a variety of measures, including the promotion of "widespread transportation electrification," defined as "the use of electricity from external sources of electrical power, including the electrical grid, for all or part of vehicles, vessels, trains, boats, or other equipment that are mobile sources of air pollution and greenhouse gases and the related programs and charging and propulsion infrastructure investments to enable and encourage this use of electricity." 

The legislation requires the California Public Utilities Commission to direct electrical corporations to file applications for programs and investments to accelerate widespread transportation electrification.  That process is now underway.  On September 14, 2016, the Commission issued an order directing the state's three major investor-owned utilities to prepare and file applications describing their proposed transportation electrification projects and programs.

On January 20, 2017, the three utilities -- Pacific Gas and Electric Company (PG&E), SouthernCalifornia Edison (SCE), and San Diego Gas & Electric (SDG&E) -- filed their applications.  As summarized by the Commission, PG&E, SCE, and SDG&E submitted proposals to invest $1 billion in transportation electrification over an approximate five year period.  Onroad medium and heavy-duty charging infrastructure proposed by SCE accounts for roughly half of this total; residential charging infrastructure proposed by SDG&E and "FleetReady Make Ready Infrastructure" proposed by PG&E round out the largest-ticket items.  Other projects include electrification of cranes and forklifts at ports, terminal yards, and airports.

The cases remain pending before the Commission, with evidentiary hearings held earlier this month.  Other cases before the Commission address proposals by three smaller utilities.

Hurricane Sandy prompts Jones Act waiver

Hurricane Sandy's disruption of petroleum shipments and refining has led Secretary of Homeland Security Janet Napolitano to issue a temporary waiver allowing foreign oil tankers to enter ports in the northeastern United States.

The Jones Act, a federal law enacted as part of the Merchant Marine Act of 1920, limits who may carry on coastal shipping between domestic ports.  This so-called cabotage law generally requires that all goods transported by water between U.S. ports be carried in U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents.

Hurricane Sandy's impacts to northeastern energy infrastructure included disruption of oil and gasoline supplies in the area near New York City and New Jersey.  Between reduced supply and concentrated demand, gasoline is reported to be in shortage conditions.  Long lines are reported at gas stations, and demand at some stations has led them to run out of gasoline. 

In an attempt to alleviate the shortage, today Secretary of Homeland Security Janet Napolitano issued a temporary, blanket waiver of the Jones Act.  The waiver is designed to allow foreign-flagged oil tankers, that would otherwise be barred from the U.S. coastwise trade, to ship petroleum products from the Gulf of Mexico to Northeastern ports.  The waiver will remain operative through November 13th.

2/17/10

More information on the DOE nuclear loan guarantees: the US will guarantee $8.3 billion of the $14 billion Plant Vogtle development spearheaded by the Southern Company -- and the developers are still saying they are exposed to risks from private financing for the rest. DOE is reportedly looking at three more sites: Unistar's third reactor at Calvert Cliffs in Maryland; a troubled San Antonio, Texas project, facing rising cost estimates and a lawsuit filed by San Antonio's municipal utility against its partner in the project, NRG; and the joint Scana Corporation and Santee Cooper proposal near Jenkinsville, S.C.

An interesting take by Michael Northrup: there is a clean energy gold rush, but the US is being left behind. We have only one out of the top 10 wind manufacturers (General Electric) and only two of the top 10 solar manufacturers (First Solar and Sun Power, both of whom actually make stuff overseas). An interesting tie to Habib Dagher's vision that the opportunities for renewables lie not only in having installed capacity, but in manufacturing the equipment needed for development. Under this model, your production is not limited by your local demand, but rather the global market -- meaning we can import dollars into the country (or our states) from abroad, resulting in a net increase of the pie.

Solar news: NV Energy and NextLight Renewable Power, LLC announced a 25-year power purchase agreement for power from NextLight's Silver State Solar Power photovoltaic plant. This 50 MW project located near Primm, NV should see groundbreak by the end of 2010, employing 230 construction workers and coming online in May 2011. The specific terms of the power purchase agreement were not disclosed, but we do know that the long-term agreement stems from NV Energy's 2009 Request for Proposals for renewable energy and requires approval by Nevada's Public Utilities Commission.

In Maryland, some are pushing for property-assessed energy efficiency loans, and increased incentives for solar. Maine faces a similar proposal in the form of LD 1717.

In Connecticut, U.S. Sen. Chris Dodd calls for rebuilding the Kleen Energy plant that recently exploded while under construction.

$14 million in stimulus grants to Maine ports (Searsport, Eastport, Portland), stated as supporting "green cargo" like wind turbine parts.

Diesel from algae? DARPA says yes, and that it will be cost-competitive with true fossil fuel.

$9 million loan program to retool the old Ethan Allen furniture factory in Island Pond, Vermont, into a pellet factory.